u can't compare graphics from a 3rd person to a fps, but even if you did, facts will tell you after playing the demo, the graphics are just a technical masterpiece.
Ive read plenty of reviews and one preview from a 360 site. 99% of them state very clearly that nothing on a console has graphics like kz2 and this includes the xbox site. The xbox preview was on n4g if you wish to check it out.
Research done? Yes!
Outcome: best graphics on a console!